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Copper, Zinc, and Nickel producer Kagara says it will cut 130 workers from its permanent workforce in Perth and North Queensland to stay profitable.
The move follows the company posting a net loss of $48.9 million for the half-year, blaming falling commodity prices and the rising Australian dollar.
In a statement yesterday Kagara said it would be restructuring its business and priorities to cut costs.
It said it would be "substantially scaling back" exploration spending and focusing on zinc and copper production.
"The implementation of these initiatives will result in approximately 130 redundancies from [Kagara’s] permanent workforce across the North Queensland operations and the Perth corporate headquarters, with the overall workforce being reduced to approximately 350," it said.
"As a key player in the resource sector in North Queensland, the company deeply regrets the impact of these measures on its workforce."
"Meetings are being held by senior management representatives across the business and a recruitment consultant has been engaged to assist people impacted by these regrettable but necessary decisions to restructure the business."
Kagara said exploration in North Queensland would stop "until market conditions improve".
It said the development of its West 45 underground mine at Thalanga in Queensland would also stop until zinc prices moved higher.
Image: The Bull